What do you use?
I think Paypal is the better choice with less fees, easier handling of money straight from the account etc.

But 2CO is more safer and wouldn't lock your account for no reason like Paypal is infamous for.

Well we have used most payment processors but the following are the best

2CheckOut
MoneyBookers
Authorise.net

PayPal last because its very time consuming and it puts up a fight when one of our reps access from offshore datacentres.

2CO looks like a more professional solution for a webhost

I would use both, as it opens up your client range a little bit better. The more options they have, the more of a chance you have of getting those that don't have 2CO or vice-versa. I believe in offer as many options for clients as possible.

We use both, paypal might be a little easier since you can choose when to withdraw your money. And the Debit card you can get from them works great!

But if you want to accept credit card 2co is the way to go, 35 dollar on time setup fee is cheap compare to other merchants

I prefer 2CO over Paypal, not only because there's no monthly fee, but because Paypal locked my account for 3 months.

Paypal Doesn't have a monthly fee... Atleast Not for me?

I choose paypal, but only because I have never used or tried 2CO, most people I associate with, uses paypal, so its what I use aswell,

Neither Paypal or 2CO have monthly fees.
When Paypal locks you out of your account there is usually a legitimate reason but there are always mistakes made.
I use both and I have yet to have a problem in over 3 years.

I use 2CO and Paypal.

I preffer 2CO but most of my customers use Paypal.

Paypal have never locked my account, but they have put some payments on-hold without any reason. Then after 3-4 weeks, they reverse or release the money and don't tell you what the problem was. If someone claims an unauthorized use of his/her account, Paypal just reverse the payment. No matter if the information you have in your records (IP address, name, phone number, street address) match with Paypal records.

We use both PayPal and 2CO (not lately, as it's not real easy to setup with our shopping cart).

Both have advantages.

Out of the entire time we used PayPal, we had one major problem with them.

When we had AvidNewMedia, we had a customer who paid her monthly $18.99/mo bill, and was charged $789. It appeared on her card as a charge from PayPal AvidNewMedia. She of course, then did a chargeback.

PayPal told us that there was nothing they could do.

After a week of back and forth communication between the customer and us, the customer and PayPal, PayPal and us, etc, we found that it was PayPal's fault indeed. They used our transaction to bill the customer for an additional amount that she owed them. Since they used our charge to do it, it looked like WE charged her $800. Of course when she did the charge back, she did the chargeback for $789, which went against US. Again, PayPal stated that there was nothing they could do.

We faught it for the entire following week, and finally the chargeback was reversed.

Paypal can be a good option to offer as it's used by so many people. Small time internet marketers that want to host affiliate or adsense websites like it because they have money in there already. I have them asking me constantly if I accept Paypal.

I don't have any issues with Paypal, but do recognize the downside of some of their policies.

i would use as many as possible to give my clients all the options. the best is paypal due to it's well-matured and trusted image, but in the future the best may be google checkout. does anyone have experience with using this?

we use paypal and authorize.net bith have the ood points and bad paypal can be a good if you set the protection they now have right. The only problem with paypal is no matter what proof you have they always side with the customer.

I know this thread is old, but I just wanted to reinterate what Blue and Mark said above, PayPal will only lock your account for a legitmate reason, sometimes they make mistakes BUT since 2002-2003 area I've used BOTH and have yet to have any major problems.

Absolutely untrue. We have yet to have a case where PayPal has sided with the customer. When the customer is wrong, they're simply wrong. When we have provided proof, PayPal has always decided in our favor.